How to Use Crowd-Funding Sites to Raise Money for Your Non-Profit

by Joe Garecht

Of all the innovative advances in online fundraising over the past decade, one of the most impressive has to be the rise of crowd-funding websites.

Some of these sites, like Fundraise.com, CauseVox,DoJiggy’s Pledge software and Fundly were set up specifically to help non-profits raise money to support their causes. Others, like Kickstarter and indiegogo, aren’t non-profit specific but have been used by charities to raise money to support their mission. Today, let’s talk about crowd-funding websites for non-profits: what they are, and how your organization can use them to raise more money quickly and efficiently.

What Crowd-Funding Sites Are

While features differ from site to site, at their most basic crowd-funding sites are websites that allow your non-profit to set up an online fundraising campaign based around a fundraising page, and accept money directly from that page using the website’s own credit card processor.

Many of these sites will also allow individuals to set up fundraising pages on behalf of charities they want to support, and others will allow your non-profit to set up a master page for your campaign and then allow your supporters to set up tangential pages that they can use to get their friends and colleagues to donate a portion of the goal of your master campaign.

Some of the sites (like Kickstarter) are geared more towards producing tangible products, and thus are best used by charities like arts organizations working to fund a play or art exhibition. Others (like CauseVox) are specifically for non-profits and thus can be used to support a wide-range of organizations.

Crowd-funding sites work best for funding specific projects or campaigns, and do not work well for general fundraising or things like annual giving. Some of the above listed sites work well for raising money through events, as do event-specific websites such as EventBrite.

What Crowd-Funding Sites Are Not

Many non-profits that find out about crowd-funding websites get very excited and make the mistake of thinking that these sites are magical cures for all of their revenue woes. Crowd-funding sites can be a huge help, but they are not a fundraising panacea.

For example, one of the great things about these websites is that once you get some traction on your campaign, other people from around the world may decide to donate solely based on the strength of your project. That being said, don’t expect to slap up a fundraising campaign, go away for three weeks, then come back to find that you’ve raise $1 million. It doesn’t work that way. You’ll need to get the word our first, get some traction from your own supporters, and then you may get some unexpected help.

The best way to see what crowd-funding sites are all about is to go visit a few of the sites listed above, poke around and kick the tires. Check out projects that are currently listed, and see what types of projects are getting funded, and which aren’t. Doing so will give you a good insight into whether or not your fundraising campaign has a good chance of being funded through that site.

Which Crowd-Funding Site will Work For You?

If you’re interested in using a crowd-funding site for your next fundraising campaign, be sure to shop around. Each site offers different features, costs, and benefits. Here are some of the key things to watch out for:

1. Look and Feel

What do the fundraising pages look like? Are they appealing? Will they be appealing to your donors? How easily can you present your project given each site’s constraints and customs? (For example, at KickStarter, a video is required for fundraising success. At Fundraise.com, you’ll want compelling pictures, but won’t need a video).

2. Ease of Use

How easy is it to set up a fundraising page? Do you need to know HTML or have other technical skills to make your page look great?

3. Payment Processing

What payment methods can donors use to make donations to your organization? Do they take all major credit cards? How about e-checks? How long does it take for donations made on the site to reach your organization’s bank account?

4. Fees

What is the total cost of using this fundraising platform? Is there a monthly fee? Set-up fees? Credit card processing fees? Fees for sending you a check or a statement?

5. Marketing and Social Networking Capabilities

What tools does the site provide to help you spread the word about your fundraiser? How easily is it to link and promote your fundraising page on social networking sites? Can your supporters set up their own pages to support your cause, and have the money funneled back to you and apply to your overall fundraising goals?

6. Traction

Does this site have traction? (In other words, are people using this site to make donations, and are non-profits successfully raising money through this platform?) You want to use a site that at least has a decent amount of traction and traffic. Ideally, people come to the site to browse for causes to support… that way, you may get donations from folks who you don’t know, and who simply find you on the site.

Tips for Making the Most from Your Crowd-Fundraising Campaign

In order to maximize revenue from your crowd-funding campaign, be sure your non-profit does the following three things:

#1 – Create a Compelling Page

The best way to get new donors to support your cause through crowd-funding sites is by creating an emotional, compelling fundraising page. Use pictures and videos where possible, tell an amazing story, and explain to people exactly how much you need and what the money will be used for.

#2 – Start With Your Own Network

It’s imperative to launch your online fundraising effort by reaching out to your own network. Tell everyone you know about your campaign – including your donors, supporters, staff, volunteers, board, etc. Ask them to e-mail out the campaign to everyone they know, and to ask their entire network to donate to the cause. You won’t get donations from others on a crowd-funding site until you have a good amount of traction from your own network showing that you are serious.

#3 – Publicize the Effort

You also want to publicize your crowd-funding campaign as much as possible. Put it on the front page of your website. Link to it on your Facebook page, through Twitter, etc. Try to get your local media involved by suggesting story angles. Take every opportunity to spread the word and get people talking about your project.

Thanks for your question. Honestly, I think you could be successful on any of the larger non-profit crowdfunding platforms. The key for you will be getting your existing donor and support base involved, getting them signed up to help spread the word, getting them to donate… your volunteers should be able to help you generate significant visibility and buzz for your campaign, which in turn will help generate donations…

Me and partners are trying to launch a non profit chain of use material store with average of 8000sqf that will hires disabled,handicap, overage worker. We need 125k to settle the opening, so far we got 30k but were far from opening.

The initial project is to open 1 store a year on a basis of 5 years what
What platform would you recommanded and what style of presentation would you base the project

The first step is to build support offline, before you run a crowdfunding campaign.

Have you put together a board that is helping you fundraise? Have you asked for donations in person? Have you cultivated supporters and donors? If not, start there, before you launch a crowdfunding effort.

Joe, this site is really great! I love all the wonderful advise for those of us not schooled in fund raising. I also have a question I am hoping you can help me with. I am starting in a non profit program in my area. It has been started in other places in the US but I am the start up person for my county. We will supply a bag with books, plushes, activity books with crayons packed into individual string bags to first responder vehicles in my area. The first responder will hand these bags out as needed to children involved in various high stress situations like domestic disputes, accidents ect to help keep them calm and distract them for a bit. What would you consider the best avenue to use in order to raise donations for this program?

Thanks for your question, and congrats on your new program. For all non-profit organizations, no matter how small or where they are located, the fundraising start-up is always the same: start with individual fundraising. Put together a board, get the board to donate and to introduce you to their network. Start doing non-ask events and fundraising meetings. Raise money from individual donors, focused on major and mid-level donors. Only after you have a base of support set up should you move to things like direct mail and crowdfunding.

You should check with your accountant. The rules vary, depending on the type of project, the person / organization receiving the money, and what the backers receive in return for their donation or purchase. For more, see:

Hi Joe,
I am a novice board member for a small non-profit half day K-8 school for children with learning differences like dyslexia, dysgraphia, ADHD, language processing etc. The program has a one to four teacher to student ratio and has been very successful helping these children transition back into public schooling. The costs to run this school make it very expensive and out of reach of many children. I would like to start a crowd funding to provide financial aid to the families of struggling children but cannot afford the tuition. Is there any particular crowd funding site that would help us reach more potential donors and keep the tax deductible status of the donations?

Thanks for your question. There are lots of great crowdfunding sites out there, and we just don’t have the time to stay on top of all of them, so we don’t provide recommendations on individual services. Your best bet is to use the guidelines in this post to make sure the sites you are thinking of using would be a good fit for your individual organization’s needs.

Hi Joe,
I am the president of the board of our non-profit organization committed to provide drinkable water bore holes (4) for our village in Nigeria. We have monthly contributions from native members of the village here in the USA but far less than the $100,000.00 required for the project. Could you give me the best crown funding site to raise fund for our purpose. All donations are tax deductible.
Sola

Hi Joe,
I’ve just been asked to join a board for the Canadian Music Competition.
They run a yearly competition inviting young people from 6-30 to participate in 3 professionally judged competitions – Wind Instruments, Piano and Vocal – sometimes they add others. Nationally they give-away $100,000 in scholarships.
They are a National non-profit organization with chapters across the country who are responsible for organizing local fund-raising. So far via concerts and previously had bank supporters. The local chapters are trying to bring in new members to help raise funds to support their yearly expenditures between $50K-$60K. Nationally they have approx. 620 competition entrants yearly, who this year will be charged $500 each to enter of that they will receive a $200 tax benefit. Entrants are very talented, but some can’t afford the entry fee. I plan to produce a past entrant testimonial piece, but would appreciate your input on the best way to approach fund-raising. Any Insight would be appreciated.
Robin

I have become involved with the SA Fruit Tree Foundation which aims to establish viable orchards for women/youth co-ops as well as promote planting of a fruit tree per household in urban areas.
It has not yet carried out any activities to enable it to generate compelling pictures/videos.
How can we get around this and still drum up support. We currently have a facebook page.
Regards
Lathu Jonga

Dear Joe
I am the president of a small society association known as Societal Ill Eradication association. We work with people mostly youths who get ensnared in the snares of drug and alcohol and in turn disrupt the harmony indulged by the communities. We hope to raise funds for establishing a center for rehabilitation and other value adding educational schemes. Our locality is in the central highlands of Papua New Guinea,a small Island nation in the South Pacific ocean a few hundred kilometers north of Australia. Please advice on how to meet this goal of ours.
Thanks!!

I am a member of the Board of Directors for a US based foundation which is set up to donate to charities specifically grief related. We currently have over 30,000 followers on Facebook and I am looking into helping them raise funding to complete the websites that will help others in their grieving process. Do you have any specific recommendations for a choice of funding sites for us?